Critics of renewable energy frequently fall back on the argument that without sufficient battery power and capacity it’s impossible to manage a national grid using unpredictable energy sources like wind and solar.
The cost and unreliability of renewables is just one reason why American President Donald Trump has attacked wind and solar power as the “scam of the century”. Another driver is that China has the global battery market largely sewn up, meaning that US battery producers can’t compete on price or access to critical minerals. As a result, in 2024 nearly all the battery cells used in US utility-scale storage projects were supplied by China.
In retaliation, the Trump administration has slashed grants and tax credits for renewable energy companies in the US, resulting in investment into clean energy projects falling by some 20% since 2024, reports the Financial Times. At the same time, from 2026, US battery suppliers will be heavily penalised for collaborating with foreign companies, especially those from China.
This leaves US battery manufacturers in a pickle: even as they ramp up domestic battery production, energy intelligence firm Wood Mackenzie believes only 40% of US demand can be met by American producers by 2030. Yet, cutting all ties with China’s expansive value chain will likely drive up battery prices in the US. Projects are already being scaled back or cancelled as worst-case scenarios by Wood Mackenzie anticipate that “the cost of a utility-scale solar facility in the US will be 54% more expensive than in Europe and 85% more expensive than a new solar plant built in China”.
The implications don’t end there.
While China continues to push the boundaries of battery innovation, Leslie Abrahams, the deputy director for energy security and the climate change programme at the Center for Strategic & International Studies, believes R&D and the long-term battery “innovation pipeline” in the US are now at risk.
Speaking on the Interchange Recharged podcast in May 2025, Abrahams said “one option we have … is to innovate our way out of this”, something “the US has historically had a strong competitive advantage in”. However, innovating, commercialising and scaling up takes time and, right now, China is all-dominant across the entire renewable space and as the key supplier of the world’s current “go-to” battery: lithium-ion.
Whether the US comes out punching with some legendary battery innovations remains to be seen. Until then, however, there are plenty of other exciting developments worth noting. Let’s take a look.
Lithium iron phosphate (LiFePO4)
For now, lithium-based batteries continue to lead the pack, and the likes of Goldman Sachs anticipate that this supremacy will continue. However, there are innovations in the lithium universe worth noting, specifically around lithium iron phosphate (LiFePO4) batteries.
According to Dr Lee Pan from Hubei University in China, the advantages of LiFePO4 batteries over rechargeable lithium-ion batteries include better safety, longer lifespans, and superior life per charging cycle. However, their lower energy density means that LiFePO4 batteries are currently better suited to powering a golf cart than an intricate electronic device.
Energy density
Energy density is a big deal when it comes to batteries. Jobert Louw, from renewable energy company Scatec, explains that some of the most interesting battery innovations currently focus on energy density, or the amount of energy that can be stored in a single unit.
“Over the past four years, the energy density of containerised batteries has almost doubled from three megawatt-hours per 20-foot container to upwards of 6MWh per 20-foot container,” says Louw. When it comes to mega battery installations, this leap translates into better land use and more economically feasible utility-scale projects, he explains, noting that “battery cell chemistry innovations that lead to safer, more sustainable and longer life cycle batteries” are also piquing his interest.
Solid-state batteries
A major push coming out of the US is the next iteration of solid-state batteries, which are being billed as the big rivals to lithium batteries. Explaining the difference, New Scientist journalist Matthew Sparkes highlights how these more powerful, lighter, faster-charging and potentially longer-living batteries are less liable to catch fire, and can be charged to 100% capacity rather than around 80% for lithium batteries. The big structural difference between the two is that solid-state batteries replace the liquid or gel electrolytes in lithium batteries with a solid materials, such as ceramics or polymers.
There is, however, a catch: solid-state batteries are not only more costly to manufacture but may also prove harder to recycle than their lithium equivalents. Since end-of-life recycling strategies for solid-state batteries are not yet in place, Siyu Huang, CEO of solid-state battery maker Factorial Energy, believes this could ignite a sustainability crisis. She explains, “With solid-state batteries entering automotive applications as early as 2026 and an average lifespan of 10 years, we face a critical window for developing robust recycling solutions before the first wave of retirements hits in the mid-2030s.”
Conversely, Huang notes that some 90% of lithium-ion batteries are recycled globally, and China has already implemented policies to ensure “a 100% collection rate for EV batteries”.
Sodium-ion batteries
In a departure from lithium, in 2024 China opened the largest sodium-ion battery in the world in Hubei province. The world’s second-largest sodium-ion battery installation is in the south of the country. The Hubei installation is expected to meet the daily power needs of 12 000 households, while simultaneously cutting carbon dioxide emissions by 13 000 tonnes a year.
Chinese innovators are also pushing the use of sodium-ion batteries for other applications, including powering popular scooter brands like Yadea. Neighbouring Japan is also focusing on sodium ion, and is rolling out incentives such as grants and tax breaks to innovators looking to commercialise these battery technologies.
So, what makes sodium-ion batteries such a viable possibility?
Instead of using relatively rare lithium, these batteries require sodium – a widely available resource found in the Earth’s oceans and crust. As a result, sodium-ion batteries should potentially be a cheaper energy storage alternative. While the BBC reports that there is currently insufficient research to confirm whether sodium-ion batteries are safer than lithium batteries, advocates point to the reduced need for lithium and cobalt mining. Detractors, meanwhile, query the cost and lower range that sodium-powered batteries can – at least, currently – achieve.
Molten hydroxide salt battery
Sticking with sodium as a theme, interesting work is being done in Denmark, which is forging ahead with molten hydroxide salt batteries. Denmark’s Esbjerg plant – the first in the world – was opened in 2024. It has a 1MWh storage capacity, a 1.2MW capacity for steam discharge and a 480°C steam temperature, according to thermal energy storage group Hyme.
The concept aims to store additional energy generated via renewables by converting electricity to heat, thus raising the temperature of the salt. Power can be released back into the grid when needed by running the molten salt through a steam generator. The steam can then be use to drive turbines and create electricity. Energy can be stored for up to two weeks, enabling the operators to bridge the power reliability gap which continues to bedevil renewable energy options.
Molten salt’s South African roots
In 1978, Johan Coetzer, a researcher at the Council for Scientific and Industrial Research, patented the Zeolite battery research in Africa (Zebra) concept for a sodium-nickel-chloride battery. While a it is a type of molten salt battery, the concept differs substantially from the molten hydroxide salt battery in Denmark.
Coetzer’s idea immediately attracted the attention of De Beers and Anglo American and, in the 1980s, even saw the demonstration of Zebra batteries in test electric vehicles. In the 1990s, pilot production lines saw Zebra batteries being produced in the United Kingdom and Germany. Today, around 2 000 Zebra battery packs are produced annually in Switzerland.
Coetzer was awarded a gold medal by the South African Academy of Science and Arts in 2016.
Buoyancy energy storage technology
A different take on energy storage is emerging countries such as Austria and the Netherlands, where storing energy underwater is being explored.
Designed by Austria’s International Institute for Applied Systems Analysis (IIASA), buoyancy energy storage technology (BEST) is based on the hydroelectric power method, where water is pumped uphill for storage in a dam and released downhill when needed to generate electricity. In the case of BEST, platforms of balloons or tanks filled with compressed gas are winched down to the sea, ocean or lake floor using an installed anchor system.
Another approach being trialled by Netherlands-based Flasc makes use of a floating platform. When needed, electricity is generated by allowing the platforms to rise up, thereby driving a motor to create electricity.
The solar-battery effect
Finally, other innovations in this space are being driven through collaboration and symbiosis. A strong theme emerging in the solar energy field is the marriage of convenience between mega solar installations and large-scale, co-located battery storage systems.
In January 2025 it was announced that the world’s first 24-hour solar PV project would come online in 2027. The size of 10 000 soccer fields, the $6 billion Abu Dhabi investment will create 5.2GW of solar and 19GWh of battery capacity. That means a reliable supply of power to about 750 000 households a day, thanks to the 1GB baseload.
While not on this scale, Africa is also following this blueprint with both South Africa and Egypt recently teaming up with Norwegian renewable energy systems firm Scatec to create battery energy storage systems (BESS) in Mogobe (103MW/412MWh battery capacity) and Obelisk (100MW/200MWh), respectively. “The Mogobe BESS project makes use of a four-hour battery configuration where the Obelisk hybrid project implements a two-hour battery configuration coupled with solar PV,” Scatec engineer Jobert Louw told Acumen.
This approach, explains Louw, means “we are now also able to blend large-scale battery storage solutions with traditional renewable energy sources to generate stable, clean, and affordable power in markets where cost and reliability of energy supply is front of mind.”
Recycling: A key trend to watch
There are three reasons to applaud the advances being made in battery recycling technology: the sustainability benefits, reduced pressure on the resource supply chain since materials like lithium, cobalt and nickel can be repurposed, and the cost-reduction implications.
Traditionally, battery recycling posed a problem due to challenges extracting valuable components from the "black mass" created by crushing batteries. On top of that, there were few guidelines on how to design batteries to be fully recyclable. Now, directives from the likes of the European Union require that at least 45% of all batteries sold must be collected and recycled, rising to 63% by end-2027 and 73% by end-2030. The intention is to create a circular economy across the lifespan of a battery, which includes the design of batteries for ease of disassembly for recycling. The regulation also sets exact limits on heavy metals, such as mercury and lead.
Commenting on the advancements in battery recycling, Scatec Engineer Jobert Louw says, “It’s exciting to see that most top-tier battery suppliers and third parties have and are expanding recycling processes. This plays an important role in planning the decommissioning phase of battery projects and will become a critical process in coming decades for battery projects globally. This can be a good opportunity for emerging market countries to position themselves and benefit from the batteries currently being deployed at scale.”
Here’s what you need to know
- In 2024, renewable energy sources supplied 40% of the world’s electricity generation, according to the 2025 Global Electricity Review.
- Critics of renewables slam the unpredictability of supply, which make it challenging to manage a national grid.
- Advances in battery power and capacity, as well as entirely new innovations, are expanding energy storage options and boosting demand for large-scale installations.
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